"Given that we now have a fair and national deal, the government will put the $1.2 billion that Labor took out back into schools funding over the next four years,'' he told reporters in Canberra on Monday.

"There will be full funding certainty over the next four years."

Last week, the Coalition raised the ire of states that had sealed deals with the former government under the so-called Gonski system.

It announced it would only honour agreements for the 2014 school year and review the system for 2015.

NSW, Victoria, South Australia, Tasmania and the ACT were angered that they would miss out on what was promised.

Queensland, Western Australia and the Northern Territory had held out on doing any deals with Labor, but will now get the $1.2 billion earmarked by Labor for their funding.

The Abbott government will also honour funding promised to non-government representative bodies for four years including $55 million to Catholic Education Commissions and $110 million to the Association of Independent Schools.

Mr Abbott said the decision meant the government was "more than keeping our commitments''.

"We want to keep our commitments in spirit as well as in letter,'' he said.

Funding for the Gonski signatory states would be distributed in the same way as previously planned. But conditions placed on NSW, Tasmania, SA, Victoria and the ACT won't apply to the other three states.

Education Minister Christopher Pyne said the government would amend the Australian Education Act in 2014 to "dismantle the regulation and red tape that made the model virtually incapable of being implemented''.

"Every student in Australia will be treated exactly the same way regardless of what jurisdiction they're in,'' he said.

Mr Abbott said the mid-year economic and fiscal outlook due in December would make it clear how the government would account for the $1.2 billion.

"We have identified appropriate savings over and above the savings that we identified prior to the election,'' Mr Abbott said.

The government will review the schools funding system in 2015, in line with legislative requirements.

The funding announcement came only hours after Labor called on Mr Pyne to be sacked citing the Coalition's broken election promise on education funding.

School's in ... Tony Abbott in pa...Source:News Limited

Opposition education spokesman Kate Ellis said the education minister and Mr Abbott had clearly lied to the Australian people and there should be repercussions for their deceit.

Asked if Mr Pyne should be sacked Ms Ellis said: "I think he has definitely displayed he is not up to the job."

"He couldn't lie straight in bed. I think Tony Abbott needs to make sure that he is the government that he told the Australian people he would be and Christopher Pyne has gone nowhere near delivering that.

"There are very real questions as to whether or not Christopher Pyne believed the words coming out of his mouth during the election."

Labor's Jason Clare also said Mr Pyne had clearly lied to the Australian people.

"If you put him on a polygraph it would blow up," he said.

The government has copped a spate of attacks in recent days after they walked away from a commitment that the Coalition was on a "unity ticket" with Labor when it came to education spending.

Labor campaigned on the platform that no school would be worse off under its Gonski funding reforms, and the Coalition said they would keep Gonski funding intact for four years.

But last week Mr Pyne said $1.2 billion has been stripped from education funding by Labor in the pre-election fiscal outlook and that he couldn't guarantee every school would get the same amount of cash.

The prime minister defended the chopping and changing on schools funding over the past week, which has seen Mr Pyne claim a $1.2 billion shortfall, then pledge $230 million for 2014, and now a further $1.2 billion.

"Now that we've got an agreement that will mean that we can have a fair and national system we've put all of the $1.2 billion back," Mr Abbott said.

Mr Pyne said the in-principle agreements with WA, Queensland and the Northern Territory meant no state school would be worse off under commonwealth schools funding arrangements.

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